He is the great negotiator.
Investing in a FedEx route basics
- Thread starter 12yearsaslave
- Start date
See now, I expect that out of a wage slave like Cactus. You as a former contractor should know better (if you were any good at it).
Not sure I get what your saying.
How do you come up with that?
It will be fine
Well-Known Member
They knock everyone down at transition and with the way they've been acting lately, I would plan on at least a 15% decrease. They screwed us hard at transition, the subsequent negotiations got better but it's turning back the wrong way now. I'd probably only do a 1 year deal from now on, that puts you back in negotiations every 7 months to try and get more.
You might be the only happy contractor left. I'm still in touch with most of the contractors I worked with and not one single one is happy. I still have the bridge if your interested.
Indeed a one year contract is about the only bullet you have in your gun. That 15-20% reduction appears to be about the average . Rest assured X managers and engineers are not going to take a 20% pay cut. The biggest challenge will be asking your guys to go from an 8-9 hour work day to a 12 hour work day for the same pay. Clearly X believes that you are not working your guys hard enough and that there is a lot of productivity that you are not extracting from them. After all they don't have to be wage and hour law compliant or have to deal with an employee rebellion.
It will be fine
Well-Known Member
Gross
Cactus
Just telling it like it is
Sounds like while you were away grooming soccer fields, Smith came in and bit you in the ass with a 3 - 5% takeaway.
Maybe you oughta' come to work a little more often.
nah. mass hysteria generally works in my favor.
12yearsaslave
Well-Known Member
It's pretty straight forward, they put some money on the table, let you shuffle it a bit. Whatever overall value they see in your area doesn't change much no matter what you say. So if on your first round they give you waaaay less revenue, that might mean they undervalued your csa. Negotiator is not one to change that, reach out to your district engineer.
12yearsaslave
Well-Known Member
My drivers make mid 40s plus benefits. It all depends on your business model. I got contractors running 100 stops per vehicle with drivers finishing by 2pm bitching about low revenue. That is a part time job you got there with that setup. It's all about quality of life for some guys.
It will be fine
Well-Known Member
You've missed the point of what I've been saying. I know how to efficiently engineer my routes. What's happening is a route that generates say $2000/week now under a new contract would generate $1600. Same stops and pieces and time, just a dramatic reduction in compensation. Fedex is taking all the profits from the routes. No profit margin means a bad business to invest in.
Is that money going into safety/csi?
It will be fine
Well-Known Member
Nope. I factor it all in when I do my projections. I assume I'll get all of safety and 70% CSI and they are slashing the contract that much.
wow. I just don't understand that at all.
It will be fine
Well-Known Member
That's been the response from everyone I've talked to, from terminal manger, district engineer, district manager. Everyone except the negotiator that thinks it's a reasonable offer. I'm in a position where I don't need to accept it, but it makes me very concerned for the future.
